Smartcards are at the forefront of electronic commerce from the point of view of the public.
Essentially small computers that fit in the pocket, smartcards differ from the old style magnetic read-only cards in that they can be written on as well as read. Typical smartcard applications today include paying for transport and telecommunications services.
Unlike magnetic cards, smartcards are not affected by magnetic fields or slight damage to their surface and they can be encrypted internally to prevent fraud.
Asia has taken to smartcards more enthusiastically than any new market.
In Hong Kong, most public transport users have an Octopus card, despite a relatively high-up front deposit.
Octopus cards are issued by Creative Star, a joint-venture company owned by the main Hong Kong transport companies, including the Mass Transit Railway, Kowloon-Canton Railway, Hong Kong and Yaumati Ferry, Kowloon Motor Bus (KMB) and Citybus.